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2020 (5) TMI 134 - AT - Income TaxCapital gain computation - justification in adopting the value u/s. 50C - property not sold for the market rate - HELD THAT:- Property is admittedly mortgaged with Catholic Syrian Bank. It is also not in dispute that one of the assessee Smt. Muragasamy Lalitha was suffering from Kidney failure. Therefore, the contention of the assessee that the property could not be sold for the market rate may have some justification. In the case of G. Anitha [2015 (4) TMI 723 - ITAT HYDERABAD] found that wherever there was an encumbrance, the value u/s. 50C of the Act need not be applied. The decision of the Division Bench of ITAT, Hyderabad (supra) is binding on a single Member. Therefor this Tribunal is of the considered opinion that when the assessee mortgaged property to Catholic Syrian Bank and could not effectively negotiate for sale of property due to Kidney failure of one of the assessee, the provisions of s. 50C of the Act not be applicable. Orders of the both the lower authorities are set aside and the addition made by the AO as confirmed by the Ld. CIT(A) is deleted. - Decided in favour of assessee.
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